In any business it is essential to be honest with financial revenue. If the financial statements are inaccurate, accounting fraud has taken place. This is what occurred in Enron's case, when their complex business model and unethical actions resulted in misrepresented earnings and a false balance sheet to illegally depict a large revenue. At the time, Arthur Andersen, a well respected accounting firm was in charge of Enron's financial sheets and knowingly went through with illegal accounting practices. When Arthur Anderson was being questioned for fraud, they destroyed all audit material.
http://www.time.com/time/business/article/0,8599,193520,00.html
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